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The expenses for budgeted production of 10,000 units in a factory are furnished below Particulars Per unit Material 140 Labor 50 Variable expenses - Direct
The expenses for budgeted production of 10,000 units in a factory are furnished below Particulars Per unit Material 140 Labor 50 Variable expenses - Direct 10 Works overhead: Variable Fixed (OMR 200,000) 20 Administration overheads (OMR 100,000) 10 Selling overheads (20% Fixed) Distribution overheads (40% fixed) 14 Total cost per unit 310 40 26 Assume that administration expenses are fixed for all level of production. Prepare a budget for production of 8,000 units and 6,000 units. Also, Calculate the cost per unit at both levels
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